Unemployment Rate Declines to 7.8%

October 5, 2012 03:05 AM
 

The Department of Labor reports the U.S. added 114,000 non-farm payrolls in September and the unemployment rate decreased to 7.8%, the lowest since July 2009. Investors expected the report to show around 113,000 jobs were added. Last month, unemployment was reported at 8.1%.

Revisions to July and August payroll numbers added 86,000 more jobs than reported last month. The labor force participation rate in September stood at 63.6%, up from 63.5% in August. The average hourly work week increased 0.1 hour from August, to 34.5 hours. Average hourly earnings were up 0.3%.

Ahead of the jobs data, the U.S. dollar index was trading about 40 points higher and slipped to about 40 points lower following the release of the report. Crude oil futures rallied about 80 cents following the release of the data.

Link to full release.

The report states employment increased in health care and in transportation and warehousing but changed little in most other major industries.


Chip says: There are all kinds of "conspiracy theories" flying around the market this morning. Well respected financial guru Jack Welch tweeted: "Can't win a debate, so change the numbers." That's a very strong statement that sums up what many are thinking about this unemployment report.

However, digging deeper into the numbers does support the upward revisions to July and August payroll expansion and the simple fact that more people may of dropped completely out of the workforce in September could be holding the unemployment rate artificially low.

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